iDeals China claims that it is, and offers plenty of specs to back it up. They say that the new iPhone nano will be the same height as the current iPod nano and include "3 sensors, camera, [and a] mirror screen but no 3G." They also say that production of the iPhone nano will begin on December 20th, when we can expect to see all sorts of shots on the web.

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Of course, there are a slew of reasons why these claims could be completely nuts. For one, it actually seems less likely for the manufacturer that leaked the last iPhone to leak the next iPhone. Does Apple really need third party cases ready at launch so badly that they're willing to forgo any level of secrecy and hand over device mockups (along with full specs?) to a company that historically cannot be trusted? No way. A factory-to-factory dialogue is all we could imagine.

And then there's the absurdity of the iPhone nano itself. On one hand, it could be an entry-level iPhone that allows Apple to corner the same market they did with their original nano (and shuffle, for that matter). But on the other, an iPhone nano would be comically small—almost like holding a Bluetooth headset to your face.

Needless to say, the entire Giz staff is highly skeptical of such a rumor—most of us don't believe it. But we wanted you to know what's going on in the world of iPhone rumors leading up to Macworld next month. Consider yourself armed and geek-dangerous. [idealschina via PMPToday]